The CFA franc-pegged to the euro at CFAfr655.96:EUR1-will fluctuate against the US dollar in line with the euro:dollar exchange rate. With the US dollar firming on improving growth there and renewed fiscal and sovereign debt concerns in the euro zone, we expect the euro to continue its downward trajectory, although we have moderated our forecasts slightly. The euro-pegged franc will continue to slide, from an average of CFAfr495:US$1 in 2010 to CFAfr519:US$1 in 2011 and to CFAfr547:US$1 in 2012.